Australian coal giant BHP to supply battery materials for Toyota

Australian coal mining giant BHP has announced an agreement with Toyota to source nickel sulphate for automotive battery production.

The chemical compound – which is used to improve energy density in lithium-ion battery packs – will be processed at a newly-opened plant in Kwinana, south of Perth (pictured above).

“This partnership has great potential to secure competitive raw materials for the EV value chains as well as to create battery material recycling loops, which is crucial for EV development in the future,” Masaharu Katayama, the chief operating officer of metals at Toyota Tsusho, said.

Toyota does not currently build a fully-electric car, however currently offers a hydrogen-powered sedan called the Mirai, and is preparing to launch a production variant of its BZ4X Concept (shown below).

Just under 30 per cent of its sales in Australia are currently hybrid models – more than any other brand.

BHP already supplies battery materials for electric vehicle giant Tesla, and has previously collaborated with Toyota on its Kwinana nickel site. Earlier this year, Toyota built a fleet of fully-electric LandCruiser 70 Series off-roaders for the facility.

While the mining company is keen to promote its ‘green’ credentials, nickel is estimated to account for less than one per cent of its total earnings.

According to the Climate Accountability Institute, the company is the world’s 19th largest emitter of carbon dioxide and in 2020 produced approximately 70 million tonnes of coal.

A spokesperson for BHP did not immediately respond to request for comment on the scale of the new operation. This story will be updated if more information become available.